A Southern California man has admitted guilt in a federal court case involving a sophisticated scheme that defrauded a leading food delivery platform of more than $2.5 million. Sayee Chaitanya Reddy Devagiri, 30, from Newport Beach, California, pleaded guilty on Tuesday in San Jose to conspiracy to commit wire fraud, acknowledging his role in a coordinated effort with several others to manipulate the company’s payment system by falsely reporting deliveries that never took place. The scheme, which unfolded over 2020 and 2021, exploited internal software vulnerabilities and insider access to generate fraudulent payments from the San Francisco-based delivery service.
Federal prosecutors detailed how Devagiri and his co-conspirators used legitimate customer accounts to place high-value orders, then leveraged credentials stolen from a company employee to access DoorDash’s internal software. This access allowed them to manually reassign these orders to driver accounts they controlled. These accounts then falsely reported that the orders had been delivered, prompting the company’s system to release payments for deliveries that never occurred. To perpetuate the fraud, Devagiri repeatedly changed order statuses from “delivered” back to “in process,” reassigning orders to the same fraudulent driver accounts and restarting the cycle. This rapid and repetitive process, often completed in under five minutes per order, was repeated hundreds of times, resulting in illicit payouts exceeding $2.5 million.
Devagiri is the third defendant convicted in connection with this conspiracy. Two of his co-defendants, including the former employee who provided the internal access, have already pleaded guilty. The former employee, Tyler Thomas Bottenhorn, admitted involvement in the scheme in November 2023, while Manaswi Mandadapu entered a guilty plea earlier this month. Another defendant, Matheus Duarte, remains awaiting trial. Devagiri faces a maximum sentence of 20 years in prison and a fine of $250,000, with his next court hearing scheduled for September 16, 2025.
This case highlights the growing risks faced by gig economy platforms, especially those reliant on digital infrastructure and remote workers. Insider threats combined with software manipulation can lead to substantial financial losses and undermine trust in these services. Similar scams have surfaced nationwide, including a case in Connecticut where a man defrauded hundreds of DoorDash drivers out of nearly $1 million by impersonating company support and tricking drivers into revealing login credentials, which were then used to divert payments.
In response to such threats, delivery companies have enhanced security measures, including restricting cash-out options when account details change and educating drivers about phishing and social engineering scams. Despite these efforts, balancing convenience with robust security remains a challenge for the industry.
The conviction of Devagiri underscores the urgent need for comprehensive strategies that combine technological safeguards with ongoing education and vigilance to protect the integrity of delivery platforms. As these services become increasingly integral to daily life, ensuring their security is essential to maintaining trust and preventing exploitation.
The Fraud Scheme: A Closer Look
Devagiri, who worked as a delivery driver for the San Francisco-based company during the scheme, collaborated with three others, including a former employee, to manipulate the platform’s software and internal controls. The operation began with placing high-value orders using legitimate customer accounts. Devagiri then gained unauthorized access to the company’s backend software by using credentials stolen from the insider employee.
This access allowed him to manually reassign these orders to driver accounts controlled by himself and his partners. These fraudulent accounts then falsely reported that the deliveries had been completed, even though no actual delivery took place. The company’s system was manipulated to release payments to these accounts for the fictitious orders.
To keep the scam going, Devagiri would revert the order status from “delivered” back to “in process” and reassign the orders again, effectively restarting the cycle. This rapid process, often completed in under five minutes per order, was repeated hundreds of times, resulting in illicit payouts exceeding $2.5 million.
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The Accomplices and Legal Proceedings
Tyler Thomas Bottenhorn, the former employee who provided the internal credentials, pleaded guilty to conspiracy to commit wire fraud in November 2023, admitting his involvement in the scheme. Two other co-conspirators, Manaswi Mandadapu and Matheus Duarte, were also charged. Mandadapu has pleaded guilty, while Duarte remains awaiting trial.
Devagiri is the third defendant convicted in connection with this conspiracy. He faces a maximum prison sentence of 20 years and a fine up to $250,000. His next court appearance is scheduled for September 16, 2025.
Wider Context: Fraud in the Gig Economy
This case is part of a growing wave of fraud targeting gig economy platforms, especially those in the food delivery sector. The reliance on digital infrastructure and remote workforces creates opportunities for both insiders and external criminals to exploit system vulnerabilities.
For instance, in a similar case, a man named David Smith in Connecticut was accused of defrauding DoorDash drivers of nearly $1 million by impersonating company support and tricking drivers into entering their login credentials on fake websites. He then redirected their payments to accounts he controlled. This scam affected hundreds of drivers nationwide and highlights how social engineering and phishing tactics are commonly used to compromise driver accounts.
Common fraudulent tactics include phishing, impersonation of company representatives or law enforcement, and coercion to reveal verification codes or banking information. Drivers have reported receiving suspiciously low-cost orders followed by calls pressuring them to share sensitive information, often under the guise of preventing fraud.
Company Response and Security Enhancements
DoorDash discovered the fraud in 2021 and immediately referred the case to federal authorities. The company has since strengthened its security measures, including restricting cash-out options when account details are changed and enhancing fraud detection systems. DoorDash also educates its drivers about common scams and advises them never to share verification codes or personal information with unsolicited callers or messages.
Despite these improvements, the challenge remains to balance platform convenience and flexibility with robust security. Continuous monitoring, internal controls, and driver awareness are critical to mitigating fraud risks.
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Implications for the Delivery Industry and Gig Economy
The Devagiri case illustrates the complex challenges faced by gig economy platforms that rely heavily on automation and remote workers. Insider threats combined with software vulnerabilities can lead to substantial financial losses and damage trust in these services. As on-demand delivery services continue to grow, companies must prioritize transparency, security, and education to protect their workers and customers.
Conclusion
The conviction of Sayee Chaitanya Reddy Devagiri for orchestrating a $2.5 million fraud against a major food delivery service shines a light on the vulnerabilities within gig economy platforms. Alongside related scams affecting drivers nationwide, these incidents underscore the urgent need for comprehensive strategies combining technological safeguards with user education and vigilance. Protecting the integrity of delivery services is essential to ensuring that convenience does not come at the cost of security and trust in an increasingly digital world.
This case serves as a reminder that as technology advances, so do the methods of those seeking to exploit it. Vigilance, robust security measures, and ongoing education remain the best defenses against such schemes in the gig economy.
